The document discusses high-impact entrepreneurs and their importance in driving economic growth. It finds that a small number of successful entrepreneurs can significantly influence and connect many other companies in their industry. These entrepreneurs often go on to become investors in other ventures after their own success. While there are not many high-impact entrepreneurs globally, the world does not need that many to create jobs and economic growth if they are able to build large, influential companies. Public policy should focus on supporting existing successful entrepreneurs to develop local ecosystems and inspire future generations of entrepreneurs.

1. HIGH IMPACT ENTREPRENEURS
Our economic future is in their hands.
December 2012 1

2. High-Impact Entrepreneurs

3. Maktoub
Aramex

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Top entrepreneurs are consistently influential in each city…
Buenos Aires
Tech Network
Amman Istanbul
Tech Network Tech Network

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And, they touch the majority of other firms in the network.
Buenos Aires
Tech Network
Amman Istanbul
Tech Network Tech Network

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Sold to Banco
Santander for
$750M in 2000
The entrepreneurs
from the three
most influential
companies are
very successful
in their own right.
Sold to Fox
Entertainment in 2007
for undisclosed price
Went public on the
NASDAQ in 2007;
now valued at more
than $4BN

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These
entrepreneurs
influenced
>80% of the
other firms in
the network,
highlighted here
in light orange.
Note: Shade of orange in the chart above illustrates the degrees of separation from the top three firms: 1 = 75% shaded and 2 = 50% shaded. Top 3 are 100% orange.

9. INTERNAL USE ONLY
The growth of this network of entrepreneurs has also drawn
other players into the local entrepreneurial ecosystem.
NUMBER OF COMPANIES IN THE BUENOS AIRES TECH NETWORK BASED ON YEAR FOUNDED
Endeavor First tech First local Google Buenos Aires $100M VC
launches in incubator VC firm opens creates a firm
Argentina opens launches office Tech District launches
Yahoo Two tech
Facebook
opens incubators
opens office
office open

12. How is this relevant?
Can a few high impact entrepreneurs change the world?

13. How is this relevant?
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.

14. How is this relevant?
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current
unemployment.

15. How is this relevant?
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current
unemployment.
Number of companies by average size
59m
# of Firms
6m 200k
Micro (Avg 1.39 employees) SMEs (Avg 35 employees) Big (Avg 1,250 employees)

16. How is this relevant?
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current
unemployment.
Number of companies by average size
59m
Nearly 90
# of Firms
percent of
all
companies
in the
world
have never
hired a
single
6m 200k
individual.
Micro (Avg 1.39 employees) SMEs (Avg 35 employees) Big (Avg 1,250 employees)

17. How is this relevant?
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current
unemployment.
Number of companies by average size
59m
99.7 percent of all companies in
# of Firms
the world have on average less
than
35 employees.
6m 200k
Micro (Avg 1.39 employees) SMEs (Avg 35 employees) Big (Avg 1,250 employees)

18. How is this relevant?
Can a few high impact entrepreneurs change the world?
There are over 65 million registered companies in the world.
If each company hired 3 employees, we would solve the world’s current
unemployment.
Number of companies by average size
59m
200 thousand
entrepreneurs
# of Firms
% of World’s
that became BIG 55%
have created
Revenues
most of the
32%
wealth and
most of the
formal jobs.
13%
6m 200k
Micro (Avg 1.39 employees) SMEs (Avg 35 employees) Big (Avg 1,250 employees)

19. A country will grow only if its companies can grow.
Between the US, Spain & Greece, can you guess which country
has more registered companies?

20. A country will grow only if its companies can grow.
Micro companies
per million people
73,216
54,607
15,883
USA SPAIN GREECE

21. A country will grow only if its companies can grow.
Micro companies Large companies
per million people per million people
73,216
103
54,607
72
38
15,883
USA SPAIN GREECE USA SPAIN GREECE

22. The good news (for Greece & the world)
# of NEW large companies required to grow GDP by 1
percent%
475
102
25
Greece Spain USA

23. The good news (for Greece & the world)
# of NEW large companies required to grow GDP by 1
percent%
475
102
25
Greece Spain USA
Bottom line:
1. High Impact Entrepreneurs grow fast and big; and once
successful become investors in other ventures.

24. The good news (for Greece & the world)
# of NEW large companies required to grow GDP by 1
percent%
475
102
25
Greece Spain USA
Bottom line:
1. High Impact Entrepreneurs grow fast and big; and once
successful become investors in other ventures.
2. There aren’t many high impact entrepreneurs in the world.
But the world doesn’t need that many to grow and create
jobs.

25. The good news (for Greece & the world)
# of NEW large companies required to grow GDP by 1
percent%
475
102
25
Greece Spain USA
Bottom line:
1. High Impact Entrepreneurs grow fast and big; and once
successful become investors in other ventures.
2. There aren’t many high impact entrepreneurs in the world.
But the world doesn’t need that many to grow and create
jobs.
3. Public policy can’t just buy more of these entrepreneurs.
They only appear as a result of successful
entrepreneurs, and success takes time.

26. The good news (for Greece & the world)
# of NEW large companies required to grow GDP by 1
percent%
475
102
25
Greece Spain USA
Bottom line:
1. High Impact Entrepreneurs grow fast and big; and once
successful become investors in other ventures.
2. There aren’t many high impact entrepreneurs in the world.
But the world doesn’t need that many to grow and create
jobs.
3. Public policy can’t just buy more of these entrepreneurs.
They only appear as a result of successful
entrepreneurs, and success takes time.

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Lessons for building a high-impact entrepreneurial ecosystem:
 Entrepreneur-led ecosystem development works best.
Governments, accelerators, investment firms, service providers and
multinational firms play important support roles, but ecosystem
development must follow the lead of established entrepreneurs.
 It takes more than just start-ups. Successful high-impact
entrepreneurs, who “pay-it-forward” by supporting and inspiring the
next generation of entrepreneurs, are required.
 A small number of high-impact entrepreneurs turn out to be
especially critical. Entrepreneurs at the top three most influential
companies touched 60%+ of the other companies in the sector.
 Entrepreneurs who have successful exits should be encouraged
to become active angel investors and/or VCs. Local
entrepreneurs who’ve “been there before” can offer the smartest
capital to high-potential and attract high-quality partners from outside
the region.

28. THANK YOU
Contact:
Cindy Ko
www.endeavor.org
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